Smart Touch Learning owes $ 30,000 on equipment purchased for use in the business. Assume the company makes timely principal payments of $6,000 each year at December 31 plus interest at 6%.

Which of the following is true?

A. After the first payment 24,000 would be shown as a long term liability

B. After the first payment 6,000 would be shown as the current portion due on the long term note

C. Just before the last payment is made 6,000 would be shown as a long term liability on the balance sheet

D. None of the above